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China must ‘play long game’ with trade partners as ‘US looks like the big bully’: analysts

Moving beyond strongly worded warnings, Beijing is seen embracing a more pragmatic approach, steeling itself ahead of more talks with Washington

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Improved trade agreements between China and Asean members could help offset the impact of US tariffs. Photo: EPA

With US President Donald Trump sending more tariff letters to trade partners, Beijing has stepped up efforts – like rallying its own trade partners – to collectively push back against Washington’s trade protectionism.

The world’s second-largest economy will provide considerable development opportunities – from broader market access to greater regional integration – while being mindful of US threats, according to statements this week following a string of overseas visits by Chinese officials.

Some analysts say the comments suggest that Beijing is embracing an increasingly pragmatic approach, rather than just strongly worded warnings, as it fortifies itself for another round of talks with Washington early next month.

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“China needs to project a firm diplomatic stance to declare its principles, while this should be coupled with actions that offer tangible benefits to its neighbouring trade partners,” said Chen Fengying, a senior fellow at the China Institutes of Contemporary International Relations.

“The US will inevitably impose additional tariffs on transshipped goods,” Chen said. “So, it is crucial for China to play the long game with its neighbours and gradually build a more unified regional market.”

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While meeting his counterparts on Thursday at the China-Asean Foreign Ministers’ Meeting in Kuala Lumpur, Malaysia, Chinese Foreign Minister Wang Yi vowed to upgrade the existing free-trade agreement with the 10-nation bloc. Most members received a 20-40 per cent hit from Trump’s so-called reciprocal tariffs.
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